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Optimal economic interventions in scheduled public transport

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  • Jansson, Kjell
  • Lang, Harald
  • Mattsson, Dan

Abstract

This chapter analyses appropriate regulatory instruments for public transport markets under monopoly and competition, respectively. For the monopoly case, the operator chooses too low supply, compared to welfare optimum. In contrast, for the competition case the operators choose too high supply, at least for the competition model that we have considered most appropriate. It is found that under monopoly a subsidy should be applied, while under competition taxation should be applied.

Suggested Citation

  • Jansson, Kjell & Lang, Harald & Mattsson, Dan, 2008. "Optimal economic interventions in scheduled public transport," Research in Transportation Economics, Elsevier, vol. 23(1), pages 30-40, January.
    • Handle: RePEc:eee:retrec:v:23:y:2008:i:1:p:30-40
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    References listed on IDEAS

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    1. Mohring, Herbert, 1972. "Optimization and Scale Economies in Urban Bus Transportation," American Economic Review, American Economic Association, vol. 62(4), pages 591-604, September.
    2. Panzar, John C, 1979. "Equilibrium and Welfare in Unregulated Airline Markets," American Economic Review, American Economic Association, vol. 69(2), pages 92-95, May.
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    Cited by:

    1. Veeneman, Wijnand & Wilschut, Janneke & Urlings, Thijs & Blank, Jos & van de Velde, Didier, 2014. "Efficient frontier analysis of Dutch public transport tendering: A first analysis," Research in Transportation Economics, Elsevier, vol. 48(C), pages 101-108.
    2. Ljungberg, Anders, 2016. "Marginal cost-pricing in the Swedish transport sector – An efficient and sustainable way of funding local and regional public transport in the future?," Research in Transportation Economics, Elsevier, vol. 59(C), pages 159-166.
    3. Chen Yan & Qiong Tong, 2021. "Analysis of the Evolutionary Game between the Government and Urban Rail Transit Enterprises under the Loss-Subsidy Mode: A Case Study of Beijing," Sustainability, MDPI, vol. 13(14), pages 1-21, July.

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